delivering strategic workforce planning at experian … · delivering strategic workforce planning...

DELIVERING STRATEGIC WORKFORCEPLANNING AT EXPERIAN

CONFIDENTIALThis presentation contains proprietary methodologies and tools that remain the property of Mercer.© 2014, Mercer

MERCER

DRAFT FOR DISCUSSION

Today’s Presenters

2

Questions?

Please type your questions in the Q&A section of the toolbar and we will do our best to answer it.

While in full-screen mode, simply use the Q&A button on the bottom right-hand side of your screen.

While in half-screen mode, use the Q&A panel on the bottom right-hand side of your screen.

Stefan GaertnerPrincipal, Workforce Analytics & [email protected]

Donald CurrierSr. Business Analyst, HR [email protected]

MERCER


AgendaWhat we’ll cover today

• Delivering Strategic Workforce Planning at Experian

– Identify Mission Critical Jobs and Drivers of Labor Demand

– Determine Internal Supply and Demand

– Understand External Talent Supply

– Build the Plans

• Lessons Learned and Key Takeaways

• Q&A

3

MERCER


DELIVERING STRATEGIC WORKFORCEPLANNING AT EXPERIAN

MERCER


We Help Clients of All Sizes, from Individual Consumersto Large Multi-National Companies

• Revenue: US$4.7 bn

• EBIT: US$1.3 bn

• Market cap*: c.£12 bn

• In top 50 of FTSE-100

• Employees: c.17,000 in 40 countries

• Largest markets: US, Brazil, UK

• Corporate headquarters: Dublin

We’re a leadingglobal informationservices company

helpingorganizations andconsumers deriveinsights and makeinformed decisions

5

For the year ending 31 March 2013* At 5 June 2013

MERCER


Our Four Business Lines

1. Credit ServicesHolds and manages extensive databases ofcredit application and repayment histories ofmillions of consumers and businesses aroundthe world. This information is used by ourclients to manage the risks associated withextending credit and to prevent fraud.

2. Decision AnalyticsUnlocks the value of our vast databases ofcredit and marketing information, applyingexpert consulting, analytical tools, software andsystems to help clients solve complexproblems.

3. Marketing ServicesProvides data, data quality, analytics and cross-channel campaign management to help ourclients better interact with their customers, andincrease customer revenue and loyalty.

4. Consumer ServicesProvides credit monitoring, fraud protection andidentity management to some 13 millionconsumers in the US and UK. We enableconsumers to monitor the accuracy of theircredit report, to check their credit score and toprotect against fraud and identity theft.

6

MERCER


What is Strategic Workforce Planning?

7

TalentDemand

TalentSupply

CorporateStrategy

WorkforcePlan

Plan to fillcritical gaps

Assess talentimplications

Workforce planning is an integrated andcontinuous process that identifies andaddresses the critical gaps betweencurrent workforce resources and futureneeds in the context of business strategy.

MERCER


Experian’s Process to Understanding and Modeling Talent

8

Identify MissionCritical Jobs andDrivers of Labor

Demand

DetermineInternal Supplyand Demand

UnderstandExternal Talent

Supply

Build the Plans

Interviews

Workshops

Data from HRIS

SME survey

Workshops

Data from HRIS

Excel basedforecasting model

Workforceintelligence tools

Public data(e.g., from BLS)

Web crawlers / Jobboards

Networks such asLinkedIn or Xing

Workshops

Checklists

Templates

MERCER



9


Demand



Supply

Build the Plans

MERCER


Mission-Critical Job FamiliesDefined

10

? Which job families are most critical for achievingbusiness objectives, and require skills that are scarce inthe marketplace?

Mission-critical job families

Scarce labor supply

Other considerations

MERCER


Mission-Critical Jobs SurveyResults

KeyResponses = The number of times a job family was selected by participantsCriticality/Scarcity = Average, weighted score (1-5; 5 is highest possible)Level = Level at which job was identified as critical and scarce (Management or Non-Management)

HeadcountJob Family Responses Criticality Scarcity Non-Mgmt. Mgmt. Level

Mis

sion

-Crit

ical

Job Family #1 15 3.70 3.70 1 1 Non-Mgmt.

Job Family #2 14 3.69 4.21 49 10 Both

Job Family #3 14 3.85 4.42 12 3 Both

Job Family #4 12 3.29 3.48 12 1 Non-Mgmt.

Job Family #5 8 3.44 3.69 7 2 Both

Job Family #6 7 3.71 3.71 3 2 Both

Job Family #7 3 4.33 3.58 6 3 Mgmt.

11

MERCER



12


Demand



Supply

Build the Plans

MERCER


13

Workforce DemandAssumptions

Excel-based tool developed to convert factors intoadjustments to workforce demand

• Revenue growth rate• Productivity increase rate• Salary cost increase estimate

Organized by critical job group, each with its ownadjustments for

• Revenue exposure• Scalability, e.g., project vs. recurring revenue• Turnover• Adjacent market expansion• Other event

Geography tracking allows for• Geographic differential• Productivity differentials applied through raw adjustments

MERCER


How the Gap is Measured

0

20

40

60

80

100

120

FY15 FY16 FY17 FY18 FY19

Talent Demand

Total Supply Without Hires/Replacements

Internal Talent Supply andDemand Gap Analysis

Tale

ntG

ap

Based on the gap, how many people do we need each year? How manydo we need to hire to meet demand and replace for turnover?

The gap is the difference between talent supply with attrition over time,subtracted from talent demand (revenue demand), plus other factors likeproductivity, new hire ramp-up time, etc. Demand is calculated by year-over-year revenue targets (% increase).

14

MERCER


How Each Assumption Affects the Gap

Model Inputs As input rises As input drops

RevenueAs revenue rises, talent demand increases

ProductivityProductivity reduces talent demand

TurnoverTurnover adds to the gap because it reduces supply

New Hire Productivity LossThe length of time it takes to become productive onthe job increases demand

Planned (Headcount) EventsThe model factors in future headcount changes thatare already planned

15

MERCER


Internal Talent Supply

Job Family #1 - Supply & Demand Gap Analysis

2010 2011 2012 2013 2014

Gap – ICs -4 -7 -11 -14 -17Gap – Mgrs. 0 -1 -2 -3 -3Gap – Total (Cumulative) -4 -8 -13 -17 -20

Total ICs Mgrs.Current Headcount 37 33 4

Projected Headcount Demand 38 39 41 43 44– ICs 34 34 35 36 37– Mgrs. 4 5 6 7 7

Hires Needed to Close Cap + Turnover 4 4 5 4 3– ICs 4 3 4 3 3– Mgrs. 0 1 1 1 0

16

Gap Scenario: What is the gap that would result if all hiring ceased?

Headcount Projections: If we applied the gap calculations to current headcount,how would that affect headcount totals over time?

Hires: In comparison to the stop-hiring scenario, when you hire more, you also haveturnover to account for in total hires calculation, which may be larger than the actualgap calculations.

Gap:

HeadcountProjections:

Hires:

MERCER


Internal SupplyOther considerations

Age DemographicsWhat will the distribution of age look like for thiscritical job family in the next five years?

Turnover RiskHow many employees in this critical job familydo you know plan to leave in the next year or two(e.g., interns and fixed-term)? How many fit theprofile of a leaver?

Future CapabilitiesWhat future capabilities are needed to executethe business strategy of tomorrow that we don’tcurrently have today? Even if that headcount iszero, you can still project the supply/demand.

17

Age Demographics: Job Family #1

MERCER



18


Demand



Supply

Build the Plans

MERCER


ApproachEight labor markets were included in this analysis

19

Southern California

San Diego

Los Angeles

Dallas

Indianapolis

Chicago

Atlanta

San Jose/Heredia

Santiago

MERCER


Potential Target Areas for Recruiting in Southern CaliforniaPD Developer IC Labor Supply Index

20

1. For Labor Supply Indices, higher scores indicategreater labor supply of workers relevant toExperian’s PD Developer IC group, relative tothe local CBSA (Core Based Statistical Area).Scores are calibrated to have an average of 100within each CBSA and standard deviation of 5.Most (95%) zip codes within each CBSA willhave a score between 90 and 110.

Los Angeles Labor Market (CBSA)

San Diego Labor Market (CBSA)

CostaMesa

Los Angeles

San Diego

LegendLabor Supply Index1

(100 = average)

0

1 - 95

95 - 100

101 - 105

106+

Approximatelytwo thirds of allzip codes fall inthis range

MERCER


Labor Market Supply

21

Atlanta Dallas Chicago LosAngeles San Diego Southern

CaliforniaSantiago

ChileSan Jose

C.R.

Job Family #12013 Labor Supply 328 186 383 773 265 1,038 349 169

2018 Projected Labor Supply 349 203 390 806 278 1,084 383 219

5-yr. Change 6.3% 9.1% 1.8% 4.3% 5.0% 4.4% 9.8% 39.7%

Job Family #22013 Labor Supply 9,408 15,840 15,552 22,760 8,657 31,417 11,200 4,656

2018 Projected Labor Supply 10,002 17,273 15,837 23,738 9,090 32,828 12,130 5,209

5-yr. Change 6.3% 9.1% 1.8% 4.3% 5.0% 4.5% 8.3% 11.9%

Job Family #32013 Labor Supply 34,003 48,741 41,640 62,392 19,048 81,440 28,958 12,033

2018 Projected Labor Supply 36,151 53,152 42,402 65,073 19,999 85,072 31,247 13,473

5-yr. Change 6.3% 9.0% 1.8% 4.3% 5.0% 4.5% 7.9% 12.0%

MERCER


Not All Workers are Looking for Jobs; Not All in the Marketare Aware of Experian’s Opportunities; and Not All of Thosewill Meet Your Standards

22

Example: Job Family #1 Funnel

25,000workers

changingemployers

25“short list”applicants

6,000availableworkers

15number ofnew hires,assuming

90% acceptan offer

100,000talent pool

500responding to

ads, recruiters,referrals

75minimallyqualified

applicants

50minimallyqualified

applicantsinterviewed

Short-list HiredInterestedMobile InformedMinimallyqualified

Inter-viewed

Source: Nielson Claritas 2013 Trendlines, US Bureau of Labor Statistics Occupational and Employment Statistics and Mercer Analysis

Mercer applied an identical arithmetic process, as shown here, when calculating the potential hiring targetsfor all occupations and locations. All numbers are estimated and have been modified for illustration.

MERCER



23


Demand



Supply

Build the Plans

MERCER


Experian Strategic Workforce Planning Strategies Defined

24

RestructureRetainBorrowBoostBuyBuild

MERCER


Experian Strategic Workforce Planning Strategies Elements

25

MetricsTimeframeBarriersInvestmentsResourcesEnablers

MERCER


Next StepsHow it all comes together

26

A workforce plantailored to address

gaps that are identifiedthrough measures such

as changing hiringpractices, career path

development, etc.

Talent demandand supplymodel providesview of internalgaps / surplus.

External labormarket showseffective laborsupply available iftalent is to behired externally.

Career pathanalysis showswhat currentinternal pathwaysare for certainroles.

MERCER


Career Path Analysis

WebDeveloper I

WebDeveloper II

WebDeveloperSenior 1

WebDeveloper

Expert

Web Dev.Director

Web Dev.Mgr. Sr.

Web Dev.Mgr.

1

1

1

0

1

0

4

0

2

3

6

4

1 2

3 2

1

1

1

0

2

Entries

Promotions

Exits

Build Strategy: How many people have we developed internally?

Total Entries: 16

Hires 14

Transfers 2

Total Promotions: 9 Total Exits: 10

Terminations 9

Transfers 1

27

MERCER


LESSONS LEARNED AND KEY TAKEAWAYS

MERCER


Lessons Learned and Key Takeaways

• There is a clear need to shift from a regional implementation process to aglobal process and focus.

• Strategic workforce planning is as much a culture change as it is anaction plan; the details of the plans aren’t as important as changing howwe think about long-term talent planning.

• It is important to find the right balance of conceptual/ methodologicalguidance and data-driven decision support.

• One size does not fit all: We are developing a macro/micro methodologythat adjusts the process depending on the business context/strategy.

• It is beneficial to plan the initiative in coordination with the budgetplanning cycle.

29

MERCER


What’s Coming Up NextWorkforce Analytics Webcasts, Workshops and Data

30

www.mercer.com/mercer-workshopsSingapore – March 12Zurich – March 13 & 14New York – April 22 & 23Chicago – May 12 & 13

Webcast Serieswww.mercer.com/webcastseries• John Deere• UMass Memorial Health Care• Johnson Controls• Diversity & Analytics• Mobility & Analytics

Mercer’s Workforce MetricsBenchmark Reportswww.imercer.com/wmrs• Workforce composition and

retention metrics• 66 countries• 6,000+ participants• Regional and custom editions

available

www.mercer.com/talent-impact-technology-conference

MERCER


Questions and Answers

31

Questions?Please type your questions in the Q&A section of the toolbar and we will do our best to answer it.

While in full-screen mode, simply use the Q&A button on the bottom right-hand side of your screen.

While in half-screen mode, use the Q&A panel on the bottom right-hand side of your screen.FeedbackPlease fill out the feedback form at the end of this webcast so we can continue to improve. The form willpop-up in a new window when the session ends.

Stefan GaertnerPrincipal, Workforce Analytics & [email protected]

Donald CurrierSr. Business Analyst, HR [email protected]

MERCER


Biography – Stefan Gaertner, PhD

• Dr. Stefan Gaertner is a leading Human Capital Strategy and Business Analytics expert whohelped organizations tell their story through hard facts and high end analytics for more than 15years. He experienced the application of quantitative methods for solving business problemsfrom within the HR function, as a business forecasting lead in the marketing function of aFortune 500 company, as an external consultant and as a scientific researcher. He is currentlya Principal in the Los Angeles office of Mercer leading the U.S. West activities of the HumanCapital Strategy and Employee Survey segments.

• Stefan has worked on countless quantitative and qualitative business analytics and humancapital strategy projects. On the tactical side, Stefan also helped organizations build their owndata infrastructure through the implementation of business intelligence software and byestablishing corporate HR metrics/analytics groups.

• Stefan holds a PhD in Human Resource Management from Georgia State University and anMBA equivalent degree from the University of Paderborn/Germany. His research waspublished in several journals including the Journal of Management and the Human ResearchManagement Review. He also presented on the topic of Human Capital Analytics at numerousacademic and practitioner conferences throughout the U.S. and Europe.

32

MERCER


Biography – Donald Currier

• Donald currently works for Experian’s HR Analytics team, which is tasked with using data toinform Experian’s people strategies through strategic workforce planning (regional and global),predictive analytics, reporting, and other initiatives.

• He has over 13 years of experience in HR and analytics roles, including online assessments,analytics consulting, selection/testing, HRIS, and compensation.

• He earned his MS in Industrial/Organizational Psychology from San Francisco StateUniversity, and his BS in Psychology from The Ohio State University. In addition, he earnedhis Senior Professional In Human Resources certification in 2006.

33

delivering strategic workforce planning at experian … · delivering strategic workforce planning...

Documents